Franchises under 50k worth investing in

Franchises under 50k worth investing in



Are you looking to invest in a franchise, but you’re on a tight budget?

Are you willing to spend no more than $50,000 on your initial investment?

Browse our listings below to see some of the top franchises for sale at Under $50,000.

You can also obtain an SBA loan for a franchise and invest as little as 30% of the total investment amount.

You can learn more here: https://www.vettedbiz.com/franchises-under-50k/

00:00 Introduction
00:17 Food & Beverage is a well-suited industry?
00:47 Some Food & Beverage exceptions
01:54 Converting an existing Business
02:32 Children’s Programs Issues
03:18 Consider the competition
03:51 SBA Loans
04:29 Work Hard!
05:00 Property Management Franchise example
05:32 Property Management ROI
06:22 Conclusion
06:35 Subscribe!

This video is for those that are interested in buying or at least exploring a franchise under $50K. Today, I’m gonna go through different industries that are well-suited for those wanting to invest less than $50,000 in a franchise or business opportunity in the United States. So let’s get right into it. What industries are well-suited or even available for those wanting to invest in a franchise less than $50,000?

They’re generally not gonna be food and beverage franchises where you have popular brands like Domino’s Pizza, Papa John’s, those are gonna be at least $200,000, as well as McDonald’s, Burger King. We’re talking about over a million dollars to open up one of those franchises. There is an exception, though. You can invest in Chick-fil-A for less than $10,000. You can invest in Steak ‘n Shake for $10,000, but those brands don’t fully operate as a franchise, and you can basically have some split of ownership like 50/50 for Steak ‘n Shake to buy an existing location and actively manage and operate that business, or for Chick-fil-A, you have a percentage of the profits split, and Chick-fil-A corporate’s gonna invest millions of dollars to develop and open up that location where you are essentially a senior employee managing that multimillion-dollar business.

So there are a few exceptions on the food side for those that don’t have $50,000, more than $50,000 to invest in a business. And you could look at different concepts that are just focused on delivery and takeout. However, if you don’t already have a restaurant or a very recognizable brand and area, it can be hard to sell through the third-party apps a new brand that consumers are not used to that’s fully virtual. You can also look at converting an existing business.
So if you have a cell phone repair business, there’s a franchise, Techy, that we’ve had clients invest with, that you can convert an existing location for as little as $45,000 into a Techy franchise, and also do the smart home installation and other technology-related services. There are a few different sports-related businesses like TGA Premier Sports. It has 100-plus locations where you can open up sports clinics to help with golf, tennis, even soccer in your local community. I believe that it starts at around $40,000.

And then children’s programs is another industry that you can invest in. But beware, I haven’t been that impressed by the figures I’ve seen on children’s programs. I see there are a lot of opportunities that you can open up for $30,000, $40,000, $50,000, even $80,000, but the average sales of their franchisees are $80,000. So even if you’re making a profit of 30%, 40%, you’re not even making $40,000. And most of those opportunities you have to work full-time in the business. So I would be a little skeptical for children’s programs franchises based on the information that we’ve reviewed. However, there are a few diamonds in the rough in the children’s programs space.

So if you’re investing in a franchise that’s less than $50,000, keep in mind, it’s competitive. It’s easy for people to enter into this space. It’s not like you open up a laundromat where you’ve got to invest half a million dollars and you have all these capital expenses and it’s harder for a competition to open up given the high capital expense. So less than $50,000, the failure rate we’ve seen can be higher than investments at $100,000, $150,000 for similar types of service-related businesses.
And then keep in mind also, if you’re an American green card holder or a U.S. citizen, you might be eligible for the SBA 7(a) loan program where you could only put up 30% of the total investment amount. So say a $50,000 franchise, including additional working capital, franchise fee, you might only have to invest $15,000 and get a loan of $35,000. And rates aren’t that bad, right now around 5%, so it’s great for the franchise investor. However, again, that draws more competition as people only need $15,000 cash to open up a franchise that’s the total investment is $50,000…

You can learn more here: https://www.vettedbiz.com/franchises-under-50k/

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